Deliveroo, a UK-based app that went public in 2021 with funding from Amazon.com Inc., will cut around 9 percent of its employees amid record-high inflation and recession concerns in the country, CEO Will Shu said on Thursday.  

"We are starting a redundancy process across the company which could see around 9% of the company's workforce (approximately 350 roles) leave, although we expect this to be closer to 300 with redeployments," Shu said in a statement released by Deliveroo, adding that the company works in a highly competitive industry and is witnessing a difficult consumer environment in most of its markets.  

"We are experiencing record high inflation, rising interest rates, an energy crisis and fears of a recession in the UK. We have to run our business in the most efficient way possible to withstand these challenges, and take a hard look at our cost base," the statement added.  

This step aims to ensure a constant shift toward greater effectiveness, less friction in the company's structures and quicker decision-making to allow it to navigate an uncertain period.  

In a statement released by the House of Commons treasury committee early in January, the IMF warned that the British public will be passing through torrid times as the new fiscal plan tries to counteract inflation during times of recession. This dire situation is assessed to be the result of the skyrocketing energy prices. 

The inflation rate has hit a four-decade high, increasing to 11.1%, and the government explained the reasons for this economic downturn as being due to the Covid pandemic and the war in Ukraine.

The retail industry in #Britain had a "brutal" year in 2022, with more stores closing than at any other time in the previous five years. Industry groups predict that 2023 will be just as difficult.#Inflation pic.twitter.com/niL09Hljyk

— Al Mayadeen English (@MayadeenEnglish) January 5, 2023

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Due to the long-term inflationary consequences of the pandemic and turmoil in Ukraine, the UK will, according to a Financial Times report, experience one of the longest recessions and the worst recoveries among G7 economies throughout 2023.